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25/05/2011

Mainland buyers still snapping up HK flats

 
 
     

The number of mainland buyers in the Hong Kong property market continued to increase in the first four months of the year despite the suspension of a scheme allowing them to gain residency by investing in real estate in the city.

According to the data from Centaline property Agency, 8.7 per cent of new and second-hand homes in Hong Kong were bought by mainlanders in the first four months of this year, compared with 7.7 per cent in the second half of last year.

As they are cash rich and invest heavily in luxury property , 13.8 per cent of the total transaction amount was paid by mainlanders.

The figure was slightly higher than the 13.3 per cent recorded four months ago.

Mainland buyers were particularly active in the primary market.

About 25 per cent of new flats were bought by mainlanders, up from 24 per cent in the second half of last year.

The growth in the number of mainland buyers was obvious when compared with 16 per cent recorded in the first half of last year.

In the secondary market, the number of mainland buyers recorded sharper growth this year. About 7.7 per cent of flats were bought by mainlanders, up from 6.5 per cent.

In October last year, the government announced that property investment had been temporarily suspended from the Capital Investment Entrant Scheme in an attempt to cool the overheated market.

The latest figures show the number of mainland buyers didn't decrease after the suspension, said Wong Leung-sing, head of Centaline's research department.

That's because only a limited number of mainlanders are buying homes in Hong Kong for immigration reasons. There are plenty of mainlander buying homes for investment only.

He expects the influx of mainland buyers will continue.

Meanwhile, Sun Hung Kai Properties' latest project, I UniQ Residence in Shau Kei Wan, released its 117-unit project yesterday.

A spokesman for the developer said 80 flats were sold in the first four hours. About 20 per cent of buyers are from outside Hong Kong, including mainlanders.

 

SOURCE: SCMP



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